• Bitcoin rebounds to $110,000, but mixed ETF flows suggest market uncertainty.
• Mixed institutions flow levels suggest wariness but with some outflow and larger inflow.
• Analysts caution Bitcoin may face further consolidation due to market uncertainty.

Bitcoin (BTC) is back above $110,000 but the levels were not holding the position which it had a few days ago. This recovery took place despite persistent institutional positioning volatility and mixed spot ETF flows. These are indecisive signals from the market, but a few precedents suggest that there is a chance for Bitcoin to recover in the weeks ahead.

Source: CoinMarketCap

The mixed tone in the market also comes with a divergence in investor sentiment observed in flows for the week. Bitcoin spot ETFs saw outflows of $40.47 million on Monday and $101.29 million on Wednesday. In contrast to that, Tuesday observed a great influx of $477.19 million. That back-and-forth is either a return of institutional investors, pushing against but staying relatively uncommitted as markets continue to be a locus of volatility.

Source: SoSo Value

Bitcoin Bounces Back from Key Support

Analysts including Ted also noted that BTC began a bounce in the $106,000-$107.001 range and that this recovery was likely indicative of underlying strength. This level has, in fact, served as some strong support for the prices of BTC and didn’t break despite the massive recent drop. 

Source: X

BTC has been caught in the throes of intense market volatility as buyers and sellers attempt to gain an edge over each other. Political and economic factors threaten to disrupt its market outlook. Trump has hinted at a major deal with China that might improve overall market sentiment around the world. 

Also Read: VanEck Declares Bitcoin’s October Pullback as a Mid-Cycle Reset

The next U.S. Consumer Price Index (CPI) data will be key, as a below-estimate CPI would move BTC upwards and an above-estimate figure would see bears attempt to take hold of the market further.

BTC Faces Weak Demand and Market Caution

The data from Glassnode’s latest report represented the current position of Bitconaleet, which was seen lying in one of the negative regions with a glass node for short term holders at $113,100. 

This dip is represented by a shrinking long-term holder, which points to weak demand as these investors sell more and more. Such structural fatigue suggests that BTC might need an extended consolidation to repair confidence with the market.

Source: Glassnode

The options market for Bitcoin, too, is signaling caution. The market still has a defensive look, and open interest is now at all-time highs. The high put skew is an indicator that investors are hedging for potential downside, and rallies get sold into. Shorts are still squeezed with volatility sellers getting pinned.

If the sell-off continue, BTC can try scaling back up to 0.75 quantile level or about $97,500. Against a lack of strong demand to buy, there could be an uptick in selling. In the meantime, investors are on the lookout for indications of a market bottom.

Geoffrey Kendrick, an analyst at Standard Chartered, is more bullish over the longer term despite near-term headwinds. He believes BTC would drop below $100,000, but views this as a buying opportunity. He also holds on to his year-end target of $200,000 on BTC with a long-term prediction of about $500,000 — saying Bitcoin offers “an incredibly strong use case.”

Also Read: Bitcoin Surge to New Peaks: Standard Chartered’s Bullish $200K Explosive Forecast